‘Malawi petrol prices among highest in Africa’
Malawi is among 10 African countries with the highest petrol prices, selling above the global average price of $1.33 (about K1 456.35) per litre, according to Global Petrol Prices data, a platform that updates fuel prices across the globe.
Business Insider Africa, quoting figures from www.globalpetrolprices, observed that the soaring prices have been worsened by geopolitical tensions, supply and demand dynamics and other variables.
Reads an analysis in part: “Like many other economies throughout the world, the African economy is struggling with the negative consequences of rising gasoline costs. Fuel prices have a significant influence on a number of industries, including transportation, social welfare, economic growth and inflation.
“The difficulty of managing growing fuel prices offers a complicated riddle that needs careful analysis and creative solutions as nations throughout Africa seek sustainable growth.”
In recent months, Malawi has enjoyed steady fuel prices after the Malawi Energy Regulatory Authority (Mera) board resolved to maintain pump prices in November 2022.
This meant petrol and diesel pump prices were left at K1 746 per litre and K1 920 per litre respectively.
The other nine countries with the highest petrol prices per litre include Central Africa Republic at $1.84, Senegal at $1.65, Zimbabwe at $1.70, Seychelles at $1.47, Mauritius at $1.52, Morocco at $1.52, Cape Verde at $1.46, Mali at $1.44 and Burkina Faso at $1.42.
Meanwhile, Centre for Social Concern economic governance officer Bernard Mphepo said the high fuel prices for Malawi contribute to high prices of goods and services, leading to cost of living crisis.
“This is worsening high levels of poverty,” he said.
Consumers Association of Malawi executive director John Kapito blamed the high prices of fuel on poor and expensive procurement practices and the politicised transport system.
“This is also made worse by the small volumes of fuel that we import using the most expensive financial instruments,” he said.
However, energy expert Grain Malunga faulted government policy on the high fuel price.
“It is because of the levies and safety nets that help the government to raise money for social development and projects such as Malawi Rural Electrification Programme,” he said.
The Energy Regulation Act and the Liquid Fuels and Gas (Production and Supply) institute levies and Mera collects the levies and remits to the beneficiary institutions as prescribed by the law.
Currently, there are six levies in the price build-up, namely rural electrification, road tax, fuel storage, carbon tax, Malawi Bureau of Standard cess and road levies.
Mera public relations and consumer affairs manager Fitina Khonje said in an interview on Sunday that contributing factors to highest petrol prices include transportation costs since Malawi is a landlocked country, levies and the tax structure which can be different from what is applied.
